URI Earnings Prediction
The chart below shows how URI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, URI sees a -0.74% change in stock price 10 days leading up to the earnings, and a +4.36% change 10 days following the report. On the earnings day itself, the stock moves by -1.11%. This data can give you a slight idea of what to expect for the next quarter's release.
URI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
4.09B
9.84%
2.58%
Gross Margin
37.58%
-10.42%
-3.39%
Operating Margin
26.94%
-14.23%
-5.41%
Net Margin
16.83%
-7.58%
-5.13%
EPS
10.44
4.61%
-2.43%
No Data Available
URI Earnings Analysis
United Rentals Inc Corporation (URI.N) Earnings Conference Call
Positive
Record Revenue Growth: Total revenue grew 9.8% year over year to almost $4.1 billion, with rental revenue increasing by 9.7% to $3.4 billion, both setting fourth quarter records.
Record Adjusted EBITDA Margin: Adjusted EBITDA reached a record $1.9 billion for the fourth quarter, translating to a margin of over 46%.
Specialty Rental Revenue Surge: Specialty rental revenue grew more than 30% year over year, with strong same store sales growth and an additional 15 cold starts contributing to this performance.
Strong Free Cash Flow: Free cash flow totaled nearly $2.1 billion, resulting in a free cash flow margin of over 13%, demonstrating strong capital efficiency and profitability.
Dividend Increase Announcement: A quarterly dividend increase of 10% to $1.79 per share was announced, reflecting a commitment to returning value to shareholders.
Negative
EBITDA Margin Compression: Adjusted EBITDA margin decreased by 210 basis points year-over-year to 46.4%, indicating a compression in profitability despite record adjusted EBITDA of $1,900,000,000.
Used Equipment Market Decline: Used gross profit dollars declined by 9% year-over-year, resulting in a $21,000,000 headwind to adjusted EBITDA, reflecting ongoing normalization in the used equipment market.
Rising SG&A Expenses: SG&A expenses increased by $36,000,000 year-over-year, which, while in line with revenue growth, indicates rising operational costs that could pressure margins.
Used Sales Decline Guidance: Guidance for used sales in 2025 implies a mid-single-digit year-over-year decline, suggesting a slowdown in this segment compared to previous performance.
EBITDA Margin Outlook: The anticipated adjusted EBITDA margin for 2025 is expected to be flattish, with approximately 50 basis points of margin compression at the midpoint of guidance, indicating potential challenges in maintaining profitability.
URI FAQs
How does URI typically perform around its earnings report dates?
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URI Earning Call Sentiment
Earnings call transcript: United Rentals Q4 2024 earnings beat forecasts
URI.N
1.47%Positive
The earnings call presents strong financial performance with record revenue, increased dividends, and significant shareholder returns. Despite risks like supply chain challenges and competitive pressures, optimistic guidance and a focus on specialty growth suggest positive future prospects. The Q&A highlights improved customer sentiment and a strong M&A pipeline, further supporting a positive outlook. However, management's vague responses on executive order impacts slightly temper enthusiasm. Overall, the positive elements, particularly record revenue and increased dividends, outweigh the risks, suggesting a 2% to 8% stock price increase.
